Curve DAO Agrees to Compensate 42 Million USD CRV

Curve DAO agrees to compensate victims of July hack $42 million in CRV

According to an announcement from Curver DAO’s homepage on the social networking platform Ttwitter (X), Curver DAO has agreed to compensate 42 million USD to victims of the hack last month.

Just wanted to emphasize the scale of this. Victims are made whole with this vote with:
– $7.2M worth of ETH recovered by whitehats to the DAO being distributed
– $42M worth of CRV compensating unrecovered parts (vested)
– Other whitehat-recovered funds distributed before vote https://t.co/qmcK9pmTe5

— Curve Finance (@CurveFinance) December 22, 2023

This amount of CRV will be taken from Curve DAO’s Community Fund and will be distributed in a linear vesting form within 1 year. To be more specific, every day there will be 196,626 CRV distributed, equivalent to 121,000 USD at the price at the time of publication.

According to previous information, the appearance of vulnerabilities in Curve Finance’s liquidity pools using the Vyper language created favorable conditions for hackers to carry out the attack. Projects suffering damage include:

• JPEG’d – about 11 million USD

• Metronome – about 1.6 million USD

• Alchemix – 11 million USD (refunded by white hat hackers) + 20.6 million USD

• Pool CRV-ETH – 19 million USD is being held by hackers + 5.3 million USD has been refunded by white hat hacker coffeebabe.eth

Initially, Curve proposed a deal that would allow the hackers behind the Curve pool attacks to refund and keep 10% of the stolen assets as a bug bounty reward. On August 4 and August 5, those who participated in withdrawing money from the JPEG’d and Alchemix pools on Curve returned the stolen money, with a total value of about 30 million USD.

However, at least two hackers involved in withdrawing money from the Metronome and CRV-ETH pools have not yet returned the money, with a total value of more than 20 million USD.

Unable to reach an agreement, Curve decided to reward 1.85 million USD to expose the hacker who attacked the CRV-ETH pool.

In this attack, the biggest losers were liquidity providers (LPs) who drained funds due to user panic. An estimated $1.5 billion in assets were withdrawn from pools on Curve, leaving LPs with a serious liquidity shortage.

Therefore, Curve DAO held a vote to approve the proposal to compensate LPs for running out of money. With a 94.6% positive vote, the community agreed to allocate approximately $44 million worth of CRV tokens to the affected parties.

The proposal was approved by the Curve DAO community on December 21, 2023

Chart of CRV

CRV token price has not changed much in the past 24 hours, currently trading around 0.6 USD.